% This is a function handle that gives the value function of expropration
% for the host country when cost of expropriation is low.

function output = Ve_l(z)

global   mean sigma beta Vaut nonoilgdp oilprod mul expon;

output =((1/expon)*(nonoilgdp +oilprod*z).^expon - mul + beta*Vaut).*lognpdf(z,mean,sigma);